Lawrence Water and Sewer Assets to be Acquired by Non-Profit Trust
Rates will be Reduced 20 percent
LAWRENCE, Indiana – The City of Lawrence and Citizens Gas & Coke Utility announced today an agreement through which the water and sewer assets of the City of Lawrence will be acquired by Citizens Water of Lawrence, a non-profit corporation created by Citizens Gas.
Upon acceptance of the assets, Citizens Water of Lawrence will pay the City of Lawrence $51.3 million. Citizens Water of Lawrence also will acquire operating assets and real estate owned by Lawrence Utilities, the operator of the water and sewer assets, for $7.6 million. Completion of these transactions will resolve all legal actions related to the City of Lawrence’s contract with the previous operator, Lawrence Utilities.
Citizens Water of Lawrence will be able to reduce rates 20 percent for the 14,000 customers of Lawrence Utilities because of its non-profit structure and economies of scale provided by being part of a larger organization. Citizens Water of Lawrence will own the assets as trustee of a public charitable trust, which will forever protect the utility from private acquisition and from political control.
Key Messages
“I’m ecstatic that we could reach an agreement where the City’s water ratepayers will get relief through a substantial rate decrease, the utility will be managed transparently as a non-profit trust for the people, and the agreement meets the City’s budgetary needs. I am also pleased that the utility will once again be regulated by the Indiana Utility Regulatory Commission,” said Lawrence Mayor Deborah Cantwell.
Carey Lykins, President and CEO of Citizens Gas & Coke Utility, stressed that delivering outstanding customer service will be the primary goal of Citizens Water of Lawrence. “For more than 100 years, Citizens Gas has been known for delivering outstanding customer service at among the lowest rates in the state of Indiana. In fact when it comes to customer service, Citizens Gas has been rated among the top three utilities in the Midwest for the past four years in a prestigious annual study by J.D. Power & Associates. We will bring this same commitment to excellence to Citizens Water of Lawrence,” Lykins commented.
The acquisition is subject to approval by the Lawrence Common Council. The acquisition is expected to be completed by March 30, 2007.
Lawrence customers will once again be provided a full-service bill payment center at the Lawrence Government Center, where they will be able to pay their water, sewer and gas bills. They also will be able to pay these bills at more than 60 locations throughout Marion County including three locations in Lawrence: Ace Cash Express stores at 7025 Pendleton Pike and 8027 Pendleton Pike; and Marsh Supermarket at 5104 N. Franklin Road. The Citizens Gas drive-through payment facility at 2020 N. Meridian Street also will accept Lawrence water payments. In addition, customers will be able to pay their water bills by mail and eventually online.
While exact staffing needs have not yet been determined, Citizens Water of Lawrence expects to retain many of the current personnel of Lawrence Utilities.
Although Citizens Gas & Coke Utility does not currently operate a water utility, the company does operate Citizens Thermal Energy, the nation’s second largest steam and chilled water utility district. Citizens Thermal delivers steam and chilled water through 65 miles of pipe beneath the downtown Indianapolis area. The steam and chilled water provide space heating and cooling for most of the businesses, government facilities and industries in the downtown area. Citizens Gas safely and efficiently delivers clean-burning natural gas to more than 266,000 customers in and around Marion County.
About Citizens Gas
Citizens Gas & Coke Utility is a Public Charitable Trust providing efficient and reliable energy services to more than 266,000 customers in and around Marion County. The Public Charitable Trust means the utility is managed only for the benefit of customers and the community.
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